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Wealth as an Indicator of Socio-Economic Welfare: Islamic Views

  • Asad ZamanEmail author
  • Arif Naveed
  • Atiq ur Rehman
Chapter
Part of the Palgrave Studies in Islamic Banking, Finance, and Economics book series (IBFE)

Abstract

According to Western views, wealth is unambiguously good, and so human welfare increases when wealth increases. Islam has a substantially more sophisticated view of the relation between wealth and welfare. Excess wealth is a trial, which can bring great rewards if utilized correctly, and also bring great harm if utilized incorrectly. Similarly, poverty is a trial which can bring great rewards if borne with patience and prayer, and also cause great harm if it leads to begging from others. Thus, there is no clear and simple relationship between wealth and welfare. This means that Islamic approaches to constructing an index for welfare must be substantially more complicated than those currently in use in the west. It is worth considering the reasons for undertaking the project of measurement and assessing what needs to be measured, and whether measurement itself is necessary, for achieving these goals?

Keywords

Wealth Welfare Poverty Measurement Index Sharīʿah 

JEL Codes

B59 I3 P4 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Pakistan Institute of Development EconomicsIslamabadPakistan
  2. 2.Faculty of EducationUniversity of CambridgeCambridgeUK

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